Transient Occupancy Tax and Land Lease Audit Services

The City of Manhattan Beach (“City”) is seeking proposals from qualified firms or consultants with demonstrated experience in providing Transient Occupancy Tax (“TOT”) and Land Lease Agreement auditing services. The purpose of this RFP is to select a reliable, efficient, professional consultant to audit previous TOT and Land Lease payments and agreements ensuring proper reporting of revenues to the City while also providing recommendations for improving future compliance requirements.

The City of Manhattan Beach (“City”) invites sealed proposals on the project described herein to be submitted via the City’s e-Procurement Portal, OpenGov. Proposals will be received until 5:00 pm on Friday, September 26, 2025 .

Schedule

The City plans to adhere to the RFP schedule below and reserves the right to make changes, if needed.

RFP released: September 11, 2025

Deadline for receiving questions: September 18, 2025 by 5:00 pm

Proposals due: September 26, 2025, by 5:00 pm

Finalists selected (tentative date) Early October, 2025

Presentations/Interviews(if necessary) (tentative date) Early October, 2025

Consultant selected (tentative date) Late October, 2025

The City of Manhattan Beach, incorporated in 1912, is a general law city located in the South Bay region of Los Angeles County. Covering an area of approximately 3.9 square miles, the City is home to a population of around 35,000 residents. Governed by a five-member City Council elected at-large, Manhattan Beach operates under a Council/City Manager form of government.

Known for its beautiful beaches, iconic pier, and vibrant local economy, Manhattan Beach offers a unique blend of coastal charm, residential living, and tourism. The City's commitment to sustainability, public safety, and quality of life ensures that it remains a highly desirable place to live, work, and visit.

The Finance Department collects TOT revenues in accordance with the City’s Municipal Code from both Hotel/Motel and Short-Term Rental(“STR”) operators. The City currently has 13 Hotels and about 170 short-term rentals. The current TOT rate is 14% of the rent charged by the operator and collected monthly. TOT is a significant General Fund revenue source with the FY 2025-26 revenues budgeted at $9.0 million, or about 7% of the total General Fund revenues.

The Finance Department also collects both monthly and annual remittances from multiple entities that have land lease agreements directly with the City. These leases may include a formula of profit participation as well as rents based on a percentage of all gross revenues.